Maine Moves to Ban Proposition Bets in Fantasy Contests
January 14, 2025 Marija D
Maine could significantly alter the landscape of fantasy sports contests. Senate Bill 33, introduced by Democratic Senator Craig Hickman on January 6, seeks to amend state laws governing fantasy sports by explicitly banning proposition bets and introducing stricter licensing rules. The bill was referred to the Committee on Veterans and Legal Affairs just two days after its filing.
This proposed law aims to clarify the definitions and legal frameworks surrounding fantasy sports contests while tightening regulatory oversight. The most notable provision is a complete ban on fantasy contests that feature proposition wagers or any activity resembling such bets.
Defining Proposition Bets
Senate Bill 33 introduces a detailed definition of proposition bets, framing them as wagers based on specific events or circumstances within a sports game that do not depend on the game’s final outcome. For instance, these include predictions about whether an athlete or team will sur a certain statistical benchmark, such as total points scored.
The bill further refines the definition of a “fantasy contest” to include events involving six or more participants who pay an entry fee to compete. Additionally, it proposes doubling the licensing fees for fantasy contest operators to $5,000 for both initial applications and renewals. It also eliminates the current provision allowing operators to host contests while their license applications are pending.
Maine’s approach to regulating daily fantasy sports (DFS) has grown increasingly stringent in recent years. While prominent operators like DraftKings and FanDuel maintain a foothold in the state, smaller companies such as Underdog have exited the market.
Underdog’s departure followed a $400,000 fine levied by the Maine Gambling Control Unit (MGCU) over alleged violations related to its pick’em contest offerings. MGCU Executive Director Milt Champion contended that these contests fell outside Maine’s legal definitions of permissible activities. Consequently, Maine banned pick’em-style fantasy contests in late 2023.
These developments underscore the state’s commitment to enforcing strict regulatory standards, even as it navigates the challenges of overseeing a dynamic and competitive DFS industry.
Broader Implications
Maine’s proposed ban on proposition bets reflects a growing trend among states to reevaluate their fantasy sports regulations. Kentucky, for example, is considering a new bill that would establish a framework for the Kentucky Horse Racing and Gaming Corporation to regulate fantasy contests.
As more states seek to balance industry growth with consumer protections, Maine’s legislative efforts could serve as a model for crafting stringent yet transparent regulatory measures.
If enacted, Senate Bill 33 will bring notable changes to Maine’s fantasy sports market. Higher licensing fees, stricter rules, and the prohibition of prop-style betting may enhance consumer protections but could also pose challenges for operators trying to attract and retain players.
The proposed legislation’s progress will likely be monitored closely by stakeholders across the nation. Maine’s approach may influence other states grappling with the complex intersection of innovation and regulation in the fast-evolving fantasy sports sector.
Source:
”Maine bill would ban all fantasy prop bets”, SBC Americas. January 10, 2025.
This legislation seems like a significant move for Maine’s fantasy sports industry. On one hand, I can understand the push for stricter regulations to protect consumers and ensure fair play, especially with how fast the industry is growing. But banning prop bets entirely? That feels like a big step.